How the real estate market has been trending

Let’s talk about the local Mississauga Condos market and the Square One Condos in general, how the condo prices performed in 2021, and what trends we foresee for 2022.

Looking ahead, no one can say for certain if what we see now will stay status quo as there are many factors that affect real estate, like listing inventory, government rules, interest rates, immigration, job market, geo political events etc. But let’s assume that 2022 will also witness lower interest rates, solid immigration and a healthy job market, for the purpose of our forecast.

So first let’s talk about 2020, where we will compare prices with the same time in 2021

Dec 2020 to Dec 2021 Condo Market Growth

In Dec 2020 average price of a condo apartment and condo townhouse was $519,346 and $672,281, respectively.

In Dec 2021 average price of a condo apartment and condo townhouse was $656,673 and $850,014, respectively.

So we saw an average price growth of 26.44% between Dec 2020 and Dec 2021

In terms of number of sales, there was a 9.3% increase in 2021 numbers (1,146 sales vs. 1,256 sales). However, majority of sales were noted for condo apartments, indicating affordability has been a key factor for buyers.

At the same time, it also points to low inventory for single family home category.

Read Toronto Real Estate Market Reports showing breakdown of historical prices for each type of home by City.

What is Per Square Foot Price (p.s.f.) at Square One?

As of Dec 2021, average Price Per Square Foot (p.s.f.) of resale Mississauga condos, Erin Mills Condos and Square One condos is around $1,000 to $1,150 Price Per Square Foot. Builder new condos price is around $1,200- $1,300 Price Per Square Foot in Mississauga.

Each building has its own Price Per Square Foot and it does not mean that p.s.f. is a thumb rule for all buildings or all condo types. Hence it is not right to assume that a 3 BR condo will have the same p.s.f. price as a 1 BR condo or the Price Per Square Foot in one building will be equivalent to price Price Per Square Foot at another building.

Hence p.s.f. price should not be taken as a thumb rule when shopping for a condo. Learn more about how Price Per Square Foot works.

Builder Condos in Mississauga

Mississauga builders are pricing their condos around $1,200 p.s.f. Find out what can be the best option: a builder condo or resale condos.

Interest Rate Risk

Interest rates are at an all-time low and housing inventory is down (lack of listings) which is helping prices to move up. But if the interest rates move up in the near future then affordability can erode. Or in other words, people will be able to get approved for lesser loan amounts. This further means that lower segment prices of condo apartments (Studio, 1 BR, 1 BR +Den) can go up faster than condo townhouses, semis or detached homes.

This trend can continue until the price gap narrows down and then the prices of other types of homes (2 BR, townhouses, semis and detached homes) will again rise to widen the gap.

Higher interest rates can also price out many first time buyers who will have no other option than to rent. So the rental market in Mississauga is poised to stay strong in the near future. Especially, if the new immigration stays healthy. In 2020, Canada saw some 400,000 new immigrants enter Canada.

Move-up Buyers

We saw this trend in 2021 as we moved many 1 BR condo owners to 2 BR or townhouses, and 2 BR condo owners to freehold properties in Mississauga, Milton Oakville and Burlington.

Higher Condo Prices

1 BR and 1 BR +Den are still relatively affordable and we see these prices to move up even more in 2022.

How are markets looking outside of Mississauga?

In 2020 and 2021, so many people moved outside Mississauga and GTA to smaller towns. The prices of these places have gone up so much that people are now rethinking before moving out to faraway places.

There is nothing better than staying closer to Downtown Toronto, of which Mississauga is the no. 1 choice if one is looking at mixed demography, convenience of shopping, good restaurants, public places and great connectivity.

Low Inventory

Homes are selling in no time. The market is very hot almost everywhere. Our team has helped first time buyers buy nice freehold homes and condos in Mississauga, Milton, Oakville, and Burlington.

A strong seller’s market likely to continue in 2022, with a 10% to 14% increase in average price is what Team Kalia expects.

Also read RE/MAX 2022 Outlook for Mississauga & other Canadian cties

Contact Team Kalia to Buy or Sell Your Mississauga Condo